Question 1

Which of the following is not a condition that must be met by a plaintiff who request rectification of a contract?

Accepted Answer

A)  The plaintiff must satisfy the court that all attempts to reach some understanding between the parties has failed. 
B)  The plaintiff must satisfy the court that there was a complete agreement between the parties, free from ambiguity. 
C)  The plaintiff must establish that the change in the written document appears to be an error in the recording of the document and is easily explained as such. 
D)  The plaintiff must satisfy the court that the agreement is not subject to, or conditional on any further adjustments. 
E)  The plaintiff must establish that the parties did not engage in further negotiations to amend the contract. 
A)  The plaintiff must satisfy the court that all attempts to reach some understanding between the parties has failed. 
B)  The plaintiff must satisfy the court that there was a complete agreement between the parties, free from ambiguity. 
C)  The plaintiff must establish that the change in the written document appears to be an error in the recording of the document and is easily explained as such. 
D)  The plaintiff must satisfy the court that the agreement is not subject to, or conditional on any further adjustments. 
E)  The plaintiff must establish that the parties did not engage in further negotiations to amend the contract. A

Question 2

What is rectification? How is it used by courts in situations involving mistake in law.

Accepted Answer

Rectification is the correction of a written document so that it accurately reflects the contract made by the parties. When parties to a contract reach an agreement, the written version of the contract may not reflect the original agreement. The party who claims that the written version of the agreement does not properly record the original agreement may ask the court for rectification.

Question 3

In contract law a mistake is

Accepted Answer

A)  an error about the terms of the contract, or the assumptions regarding important facts related to the contract. 
B)  a false statement made by one party that causes someone to enter a contract. 
C)  unfair manipulation that compromises someone's free will. 
D)  an error of judgment about the benefits of a contract. 
E)  the threat of physical or economic harm that results in a contract. 
A)  an error about the terms of the contract, or the assumptions regarding important facts related to the contract. 
B)  a false statement made by one party that causes someone to enter a contract. 
C)  unfair manipulation that compromises someone's free will. 
D)  an error of judgment about the benefits of a contract. 
E)  the threat of physical or economic harm that results in a contract. A

Question 4

Where a contract involves a level of risk, a court will most likely not grant relief to the party adversely affected by a mistake.

Accepted Answer

A) True 
 B)False

Question 5

A court will not enforce a contract if:

Accepted Answer

A)  the meanings of the words are not clear 
B)  one party was unreasonable in using certain words. 
C)  there are two reasonable interpretations of words in the contract and no indication which is correct 
D)  a party is mistaken as to what the subject- matter of the contract was 
E)  the parties disagree as to the interpretation of important terms 
A)  the meanings of the words are not clear 
B)  one party was unreasonable in using certain words. 
C)  there are two reasonable interpretations of words in the contract and no indication which is correct 
D)  a party is mistaken as to what the subject- matter of the contract was 
E)  the parties disagree as to the interpretation of important terms

Question 6

Mistake about terms includes the inadvertent use of wrong words.

Accepted Answer

A) True 
 B)False

Question 7

A quasi- contract is an obligation that may arise because one party has received an unfair benefit and not because of direct contractual relationship.

Accepted Answer

A) True 
 B)False

Question 8

What is a "snapped up offer" and what are the consequences?

Accepted Answer

An offeree accepts an offer kn

Question 9

A voidable contract

Accepted Answer

A)  is one that a court may set aside in an attempt to restore the parties to their original positions. 
B)  is a contract that is void. 
C)  is a contract that has been frustrated. 
D)  is a contract in which the offeree failed to undertake the proper investigations. 
E)  is a contract in which the parties have engaged in conduct that is illegal. 
A)  is one that a court may set aside in an attempt to restore the parties to their original positions. 
B)  is a contract that is void. 
C)  is a contract that has been frustrated. 
D)  is a contract in which the offeree failed to undertake the proper investigations. 
E)  is a contract in which the parties have engaged in conduct that is illegal.

Question 10

Explain the concept of rescission as it relates to mistake in contract law.

Accepted Answer

Rescission is an order of the court that

Question 11

Cal contracts to sell 1,000 logs to Doris at a price of $250 per log. Cal believes that the logs are worth only $150 per log. When Doris finds out the true value of the logs, she refuses to buy them. Cal's contract with Doris is:

Accepted Answer

A)  unenforceable 
B)  enforceable 
C)  voidable 
D)  void 
E)  illegal 
A)  unenforceable 
B)  enforceable 
C)  voidable 
D)  void 
E)  illegal

Question 12

A plea of non est factum cannot be used against a third party who has been tricked.

Accepted Answer

A) True 
 B)False

Question 13

James purchases an antique chair at a garage sale for $150.00. Later he sells it to Jacqueline for $300 and makes a nice profit. A few months later the Antiques Road Show comes to town and Jacqueline takes the chair to the show to be valued. She is advised that the chair dates as far back as 1866 and is worth approximately $5,000. Which of the following is true?

Accepted Answer

A)  James did not make a legal mistake because he was careless in determining the right price. 
B)  James can plead non est factum. 
C)  If Jacqueline sells the chair, the court will order that Jacqueline pay a portion of the proceeds of sale to James because James made a mistake. 
D)  James made a mistake about the value of the chair and so the contract will be set aside by a court. 
E)  James did not make a mistake about the value of the chair because the radically different price is one of the risks expected in the contract. 
A)  James did not make a legal mistake because he was careless in determining the right price. 
B)  James can plead non est factum. 
C)  If Jacqueline sells the chair, the court will order that Jacqueline pay a portion of the proceeds of sale to James because James made a mistake. 
D)  James made a mistake about the value of the chair and so the contract will be set aside by a court. 
E)  James did not make a mistake about the value of the chair because the radically different price is one of the risks expected in the contract.

Question 14

When a court declares a contract to be void,

Accepted Answer

A)  the contract that arose is ended by the court. 
B)  the offeree obtains title to the goods and is obliged to pay for them. 
C)  the contract is frustrated. 
D)  it is as if the contract never arose or existed. 
E)  the offeror is required to enter into a new contract with the offeree. 
A)  the contract that arose is ended by the court. 
B)  the offeree obtains title to the goods and is obliged to pay for them. 
C)  the contract is frustrated. 
D)  it is as if the contract never arose or existed. 
E)  the offeror is required to enter into a new contract with the offeree.

Question 15

Rectification is where a written contract is changed to reflect a previously agreed upon oral agreement. The courts will grant rectification if

Accepted Answer

A)  both parties claim that the agreement was incorrectly recorded. 
B)  the oral agreement was somewhat ambiguous. 
C)  the written document appears to have an error in its recording. 
D)  further negotiations had discussed the proposed change. 
E)  the written contract contains the whole of the agreement. 
A)  both parties claim that the agreement was incorrectly recorded. 
B)  the oral agreement was somewhat ambiguous. 
C)  the written document appears to have an error in its recording. 
D)  further negotiations had discussed the proposed change. 
E)  the written contract contains the whole of the agreement.

Question 16

Non est factum is most likely available

Accepted Answer

A)  where the offeror's statements are misunderstood by the offeree. 
B)  where there has been a misrepresentation. 
C)  where a party claiming the remedy has been deliberately tricked into entering into a contract. 
D)  where both parties are mistaken as to the terms of a contract. 
E)  where the party seeks rectification. 
A)  where the offeror's statements are misunderstood by the offeree. 
B)  where there has been a misrepresentation. 
C)  where a party claiming the remedy has been deliberately tricked into entering into a contract. 
D)  where both parties are mistaken as to the terms of a contract. 
E)  where the party seeks rectification.

Question 17

Mistake about terms DOES NOT include

Accepted Answer

A)  the error of judgment that a party makes when he or she enters into a bad contract. 
B)  misunderstandings about the meanings of words used in a contract. 
C)  words used inadvertently in stating the terms of a contract. 
D)  the attribution by the parties of different meanings to words used in a contract. 
E)  errors that are made in the recording of an agreement between parties. 
A)  the error of judgment that a party makes when he or she enters into a bad contract. 
B)  misunderstandings about the meanings of words used in a contract. 
C)  words used inadvertently in stating the terms of a contract. 
D)  the attribution by the parties of different meanings to words used in a contract. 
E)  errors that are made in the recording of an agreement between parties.

Question 18

In a contract involving risk a court will not grant relief to a party adversely affected by a mistake because the party knew of the risk.

Accepted Answer

A) True 
 B)False

Question 19

Builder and owner enter into a contract to have a building built. At the time they entered into the contract they were unaware that there was an underground stream below the site that would make the construction impossible. The contract has been discharged due to frustration.

Accepted Answer

A) True 
 B)False

Question 20

A legal mistake is an error in judgment.

Accepted Answer

A) True 
 B)False

Exam 8: Grounds Upon Which a Contract May Be Impeached: Mistake

Which of the following is not a condition that must be met by a plaintiff who request rectification of a contract?

What is rectification? How is it used by courts in situations involving mistake in law.

In contract law a mistake is

Where a contract involves a level of risk, a court will most likely not grant relief to the party adversely affected by a mistake.

A court will not enforce a contract if:

Mistake about terms includes the inadvertent use of wrong words.

A quasi- contract is an obligation that may arise because one party has received an unfair benefit and not because of direct contractual relationship.

What is a "snapped up offer" and what are the consequences?

A voidable contract

Explain the concept of rescission as it relates to mistake in contract law.

Cal contracts to sell 1,000 logs to Doris at a price of $250 per log. Cal believes that the logs are worth only $150 per log. When Doris finds out the true value of the logs, she refuses to buy them. Cal's contract with Doris is:

A plea of non est factum cannot be used against a third party who has been tricked.

When a court declares a contract to be void,

Rectification is where a written contract is changed to reflect a previously agreed upon oral agreement. The courts will grant rectification if

Non est factum is most likely available

Mistake about terms DOES NOT include

In a contract involving risk a court will not grant relief to a party adversely affected by a mistake because the party knew of the risk.

Builder and owner enter into a contract to have a building built. At the time they entered into the contract they were unaware that there was an underground stream below the site that would make the construction impossible. The contract has been discharged due to frustration.

A legal mistake is an error in judgment.

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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